18:05 Seema Malhotra (Labour)

The motion authorises support for the development of an electric vehicle supply chain to be delivered through the automotive transformation fund. This is part of the significant transformation of the automotive sector that we need as it makes its transition to zero-emission vehicles. We understand that this programme will support late-stage capital and R&D investments in the UK in strategically important technologies. The Minister outlined quite a lot of these, but it is important that this should cover a much wider area of technologies than batteries, including cells, battery management systems, electric machines, drives, integrated power, electronics, fuel cells and so on.

Labour has also set out why, alongside that, we must make electric vehicle ownership affordable. We have called for interest-free loans for new and used electric vehicles for those on low to middle incomes, removing the upfront cost barrier and trialling a national scrappage scheme. We would also make it easier for people to drive an electric vehicle wherever they live, accelerating the important roll-out of charging points on streets and targeting areas currently left out, such as Yorkshire, the north-west and many parts of the west midlands. We need an electric vehicle revolution in every part of the country to boost the car manufacturing industry, create jobs and make only zero-emission vehicles the option for all. For that, we need a strong domestic battery supply chain to remain competitive, build our position as a leading electric vehicle producer and sell to the world. We cannot afford to be in the slow lane. If the batteries are not made here, the danger is that the cars will not be either. We need to back our ambition with the policies that will fulfil that ambition.

The Climate Change Committee tells us that for a smooth transition to 2030, 48% of new sales need to be electric by 2023. To reach that level, we come back to the point that electric vehicles must be affordable for lower income families. That is why the Government should not be cutting the plug-in grant. On supply chains, the intended investment from the fund in the development of electric vehicle supply chain in the UK is important. That development requires strategic interventions—something on which the Government do not have the best track record.

This is an important strategic agenda and a vital step in accelerating the shift to zero-emission vehicles that we need to see. The areas I have raised are in the interest of being constructive, because Labour wants to ensure that everyone in the country can benefit from the electric vehicle revolution, instead of baking in unfairness. While it is right that the Government have said that the sale of new petrol and diesel cars will end, they are wrong to impose a massive transition on our manufacturers from Whitehall without integrated and full support. It is also important to think about the vehicles that small businesses rely on, such as light vans and small vans, and how they will also make the transition.

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